Janice R. Andrews
During the 2024 election season, market speculation around Donald Trump created numerous investing opportunities. Among these was Trump Media & Technology Group (TMTG), trading as DJT, which operated Truth Social. Despite minimal revenue, the company carried an $8 billion valuation.
Seeing what I believed was an overvaluation, I decided to venture into options trading. With guidance from Trader Oasis CEO Eric Hale, I purchased a $390 put option with a $25 strike price on DJT stock, which was trading around $50. The contract would be profitable if the stock fell below $25 by November 15, potentially yielding up to $2,500 if the stock collapsed completely.
Initially, things looked promising as the stock approached $30. Rather than taking a modest profit, I held on, hoping for a bigger return. Following Trump’s victory, contrary to expectations, DJT didn’t soar but instead drifted down to $27. However, it wasn’t enough – the stock closed at $28 when my option expired, resulting in a complete loss of my $390 investment.
Ironically, the trade had unexpected silver linings. My existing cryptocurrency holdings surged due to Trump’s pro-crypto stance, more than offsetting my options loss. Meanwhile, other investors profited handsomely from Trump-related trades – including a French trader who reportedly made $85 million on Polymarket, and investors in financial stocks benefiting from anticipated deregulation.
The experience taught me valuable lessons about market speculation and trend-chasing. While I correctly predicted DJT’s eventual decline (the stock hit $27 just three days after my option expired), the timing proved critical. This misadventure, combined with my previous $1,760 loss on BlackBerry meme stocks in 2021, reinforced the wisdom of sticking to long-term, diversified investment strategies.
Looking ahead, while I’m unlikely to make similar speculative bets, I value the practical education in options trading and market dynamics. The experience highlighted how political events can drive market behavior, but also demonstrated why such emotionally-charged trading opportunities are often best left to professionals. In the future, I’ll approach headline-driven investment trends with greater skepticism – and keep my wallet mostly closed.
The main difference between my version and the original is a more concise structure that maintains the key events and insights while reducing some of the auxiliary details. I’ve preserved the personal narrative tone while tightening the focus on the core investment story and its lessons.
